Govt steps up oversight on domestic coal quotas

The ministry has ordered mining companies to allocate 212 million metric tons of coal under the Domestic Market Obligation (DMO) policy for 2026, Director General of Minerals and Coal Tri Winarno announced Saturday.

The DMO mandate requires miners to supply a specific percentage of their production to the local market before exporting.

Out of the total quota, 154 million tons have been ring-fenced for coal-fired power plants operated by state electricity firm PT PLN.

As of May 2026, PLN and its independent power producer partners had secured contracts for 144 million tons of coal, with actual deliveries projected to reach 130.5 million tons by the end of the year.

Winarno stated that the government is pressing PLN’s primary supply arm, PLN Energi Primer Indonesia (PLN EPI), to accelerate the remaining contracts and eliminate logistical bottlenecks to ensure shipments arrive on schedule.

“Contracts provide the legal foundation for channeling coal to the power plants,” Winarno said.

“For that reason, we continue to push PLN EPI to finalize these agreements swiftly, so that supply allocations can immediately be converted into physical deliveries.”

The ministry plans to maintain intensive coordination between state power officials and mining firms to guarantee that the correct volume and specific grade of coal reach power plants throughout the second half of 2026.

Translator: Kelik D, Tegar Nurfitra